MLP Group (MLG) Q2 2024 earnings summary

Executive summary

• Yields and valuations in European logistics real estate stabilized, with demand rebounding since Q2 2024, especially in light industry and nearshoring sectors.

• Achieved strong operational and financial results in 1H 2024, with robust leasing activity, high occupancy, and tenant diversification across Europe.

• Investment property value rose 11% to PLN 5,057 million; NAV increased 13% to €620.8m (+12% to PLN 2,678m).

• Focused on expanding city logistics and medium-size units, with a landbank supporting future growth.

• Nearly 80% of the portfolio is BREEAM/DGNB certified at high levels.

Financial highlights

• Rental income reached €25.2m (+16% YoY); in PLN, rental income grew 8% to PLN 108.5m.

• Net profit was €65.3m (PLN 281.6m), a significant turnaround from a loss in 1H 2023.

• NAV per share up 13% to €25.9 (PLN 111.6, +12% YoY).

• EBITDA before revaluation was €23.0m (+9% YoY); FFO declined 25–30% due to higher debt costs.

• Cash and cash equivalents at €58.1m (PLN 250.6m), down from YE 2023.

Outlook and guidance

• Focus on leasing Business Park and Big-Box projects in Vienna, Schalke, Łódź, Poznań, Idstein, and Berlin, expected to boost rental income and NAV in 2024.

• Targeting an increase in city logistics' share of portfolio GAV from 13% to 30% by 2028, with a landbank of 2.8m sqm supporting double-digit growth.

• Expects high single-digit growth in rental rates and ERV, supported by strong demand and limited supply.

• Continued focus on Germany for expansion and strengthening presence in existing regions.